Which Cryptocurrencies to Invest In – A Few Practical TipsApril 12, 2023
Ranking of Cryptocurrencies – What to Invest in 2023?April 24, 2023
Investing in cryptocurrencies is one of the options in the alternative investment market that convinces many people looking to earn or reduce the risk of loss for their savings, resulting from economic crisis and inflation. As every investment carries risk, it is worth getting to know the investment products you want to trade in the cryptographic market beforehand. Therefore, in today’s text, we will talk about which cryptocurrencies are particularly popular.
What are the most popular types of cryptocurrencies? How can you invest in them? You will read all about it below.
Cryptocurrencies – Some Statistics (Cryptocurrencies in Terms of Market Capitalization)
The history of cryptocurrencies is not particularly long. The introduction of Bitcoin to the market was in 2009, done by a person or group of people under the pseudonym Satoshi Nakamoto. Bitcoin is a cryptocurrency and a peer-to-peer (P2P) electronic cash system, where all devices are equal in the hierarchy (no central computer). The solution is open-source software of nodes that creates a computer network (Bitcoin Network).
Initially, interest in such a revolutionary solution was relatively low. At its debut (August 17, 2010), the price of Bitcoin was $0.063 (US dollar) and did not change until October. In April of the following year, it reached $1. However, the cryptocurrency later achieved spectacular and record values. How much does 1 Bitcoin cost now? In mid-April 2023, the price of Bitcoin was about $30,330.
With the growing interest in Bitcoin, other cryptocurrencies began to appear on the market. Currently, there are over 22,000 of them, and their total market capitalization reaches $800 billion. This means a vast array of investment opportunities for those looking for profitable financial instruments.
Coins and Tokens in the Cryptocurrency Market – What are Cryptocurrencies?
In the cryptographic markets, you can find many cryptocurrencies, which are divided into several categories. The basic division allows distinguishing coins and tokens.
What’s the difference? Coins are considered products that operate on their own blockchains. Such coins are native within a given blockchain network and mainly serve as payment cryptocurrencies. Networks that have their own cryptocurrency include Bitcoin and Ethereum. These two cryptocurrencies also differ from each other. Bitcoin is a decentralized currency. Ethereum is a form of a computer network where users can run decentralized applications.
Some cryptocurrencies are not on their own but on a foreign blockchain. They are called tokens, i.e., digital units representing resources or tools. In their case, their own blockchain is not necessary. Many tokens, for example, use the Ethereum network.
Types of Cryptocurrencies – Altcoins, Stablecoins, Memecoins (Which Cryptocurrencies to Invest In)?
Bitcoin has been the most popular cryptocurrency for years, in which many people willingly invest. However, there are other cryptocurrencies besides Bitcoin, also offering solid investment opportunities and allowing various transactions.
They are divided into many categories. The most popular types of cryptocurrencies include:
The first mentioned is a large group of cryptocurrencies (coins and tokens) other than Bitcoin, which are used not only as means of exchange. The most popular include:
These are cryptocurrencies with high liquidity. You can invest in all of them and make profits, as long as you effectively follow cryptocurrency prices and close transactions at the right time. Automated trading using advanced cryptocurrency trading bots can be a great support. The EazyBot tool is one of the most effective options, giving access to all the above-mentioned altcoins. Investing in such cryptocurrencies can generate significant profit, but it is still risky.
Stablecoins operate differently, i.e., decentralized digital currencies (including due to smart contracts), permanently linked to stable assets like the US dollar or gold. This type of cryptocurrency is not so susceptible to exchange rate fluctuations, and its volatility remains at a minimal level, which increases the safety of investing in digital currencies.
However, that’s not all. An intriguing curiosity and a sign of our times are meme coins, i.e., coins inspired by memes popular on the Internet (especially on social media). Currently, their total market capitalization exceeds $20 billion. The most popular meme coins include Dogecoin, also available within the EazyBot tool.
What are Cryptocurrencies – How to Invest in Crypto Currencies?
Investing in crypto can take various forms. Some see it as an effective way to secure assets with stable coins. Others focus on big profits through quick trading of Bitcoin and altcoins like Ethereum. Meme coins offer great opportunities, which can grow at an express pace but also disappear just as quickly.
Therefore, before making investment decisions in cryptographic markets, it is necessary to thoroughly analyze the available solutions and approach the topic with reason, to minimize the risk of severe loss. This article presents only various possibilities, but does not constitute an investment recommendation.